Please show me all the steps, I need to understand the process.

2. A firm must decide between two silicon layer chip designs. Their effective income tax rate is 40% and MACRS depreciation is used. If the desired after-tax return on investment is 10% per year, which design should be chosen? Design A Design B Capital Investment Annual Revenues less Expenses Salvage Value at the end of useful life $1,000,000 $1,100,000 Iul lif MACRS property class $1,000,000 $2,000,000 $200,000$400,000 7 years 5 years 5 years